The Offset Printers Association (OPA) has sounded an urgent alarm over the proposed hike in Goods and Services Tax (GST) on paper and paperboard from 12% to 18%, effective September 22, 2025. The body has appealed to Union Finance Minister Nirmala Sitharaman to withdraw the move, warning it will devastate micro and small printing units, inflate book prices, and jeopardize millions of livelihoods.

OPA said while the industry welcomed the reduction of GST on cartons, boxes, and cases from 12% to 5%, the steep increase on paper will create a crippling inverted duty structure, where raw materials are taxed higher than finished products.

“This imbalance will trap working capital, erode competitiveness, and could push nearly 30% of micro and small units towards closure within a year,” OPA President Parveen Aggarwal cautioned. He noted that 92% of India’s printing and packaging units are micro and small businesses, collectively sustaining 2.5 million jobs and contributing ₹1.2 lakh crore to the GDP.

Industry data shared by OPA underscores these concerns. The higher 18% GST on paper inputs against 5% on packaging outputs could lock up nearly ₹5,000 crore annually in working capital. With refund delays of 6–9 months, nearly 80% of small enterprises, often run by single entrepreneurs juggling multiple roles, would be severely strained. Demand for paper has already been falling at 5.6% annually since 2020, and experts warn of another 8–10% decline if the new GST rates are enforced. Adding to the pain, industry players face classification disputes: while paper used in exercise books and laboratory notebooks attracts NIL GST, the same grade of paper used for textbooks and stationery will be taxed at 18%, creating uncertainty for nearly 60% of traders.

Aggarwal stressed the sector’s broader significance, describing printing and packaging as the “silent engine” powering education, FMCG, pharmaceuticals, retail, and exports, with packaging alone accounting for 65% of India’s ₹80,000 crore paper market.

Echoing the concern, OPA General Secretary Prof. Kamal Mohan Chopra highlighted the social costs: “Paper is the soul of education, knowledge, and culture. Raising GST from 12% to 18% will directly burden over 200 million students, with schoolbook prices set to rise 10–15%.” Chopra warned the move could derail the government’s vision of Education for All, deepen inequality in learning opportunities, and strain families already facing rising education costs.

OPA has placed a three fold appeal before the Finance Minister: reduce GST on paper and paperboard to 5% in line with cartons and boxes, ensure a uniform rate across all paper products to end classification disputes, and extend the 5% GST to the entire Chapter 48 (Paper & Paperboard) to protect micro units and keep education affordable.

“We trust the Minister’s vision to safeguard 2.5 million livelihoods and ₹1.2 lakh crore in economic value,” said Chopra.

 Aggarwal added, “This is about preserving the backbone of education and commerce for India’s future.”

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